Bharti Airtel has finalized and signed a deal to acquire fellow Indian mobile operator Loop Mobile for a reported 7 billion rupees ($116.4 million).
In a statement to the Bombay Stock Exchange, Airtel said it had now signed a definitive agreement with Loop Mobile covering the deal.
Airtel announced in February that it has arranged to buy out the assets of Loop Mobile. At the time, the company said the purchase will give it another 3 million mobile customers and around 500 2G cell sites in the Mumbai service area.
The terms of the deal have not been disclosed, but Indian media have reported that the acquisition is worth 7 billion rupees.
MediaNama notes that the time is right for an acquisition because Loop's mobile license in Mumbai is due to expire in September.
The operator didn't participate in recent 2G auctions, asserting it was entitled to a 10-year license extension. But this would have been up to lawmakers to decide.
Loop Mobile's sister company Loop Telecom once held 2G licenses in 14 of India's 22 telecom circles, but the company shut down services in 2012 following the Supreme Court's cancellation of these and other operators' telecom licenses.
A recently filed lawsuit meanwhile threatens to delay or complicate the deal. ZTE has initiated arbitration against Loop Mobile, alleging that the operator owes it around $25 million in unpaid dues, the Economic Timesreported last month.
ZTE has asked an Indian court to restrain Loop from selling its business without permission, and to require Loop to deposit all the allegedly outstanding payments into a fund while the case is being sorted out in a separate court.
According to ZTE, it was not informed of Loop's decision to transfer its operating assets to Airtel prior to the deal being announced.